Do car insurance companies do anything to protect the environment?
It is interesting to note that financial services companies and insurance providers did participate in a recent survey about greenhouse gas emissions!
South African companies and disclosure about green house emissions
The National Business Initiative (NBI) says South Africa’s major companies are now ranked among global leaders in measuring and reporting on their greenhouse gas emissions. Up to 74 of the JSE’s (Johannesburg Stock Exchange) top 100 companies have responded to the 2010 carbon disclosure project (CDP) to disclose their green house gas emissions.
The NBI says this is a significant improvement on last year’s 68% of listed companies who were willing to come clean. It is also the fourth highest response rate among 20 countries in which 4 500 of the world’s largest corporations were surveyed.
The report has cautioned, however, that most companies are “insufficiently advanced in their adaptation initiatives” and has urged a more structured focus on adaptation opportunities. It singled out the real estate sector for it low response rate in reporting on its carbon footprint. “Only one South African listed real estate company participated in the 2010 CDP”.
Environmental and Water Affairs Minister Edna Molewa said at the report’s launch in Johannesburg on Thursday November 11 2010, that South Africa was the biggest culprit in the Southern African region when it came to green house gas emissions. She conceded that this country even surpassed China and Brazil in this regard, but said South Africa was taking steps to remedy the situation.
Financial Services Sector, Car Insurance Companies and CO2 Emissions
Most companies in the Financial Services sector – other than Real Estate companies – demonstrate high levels of awareness of the potential risks and opportunities that climate change could present.
Identified risks include:
• an increase in insurance claims,
• putting upward pressure on premiums
• eroding the client base eligible for insurance policies;
• the potential for financial service providers who target lower Living Standards Measure (LSM) groups to carry a greater burden of the materialisation of risks associated with climate change, with their clients being the hardest hit, losing disposable income etc
Car Insurance Products and CO2 Emissions
It is important to note that car insurance products can be designed with a focus on reduced travel and reduced CO2 emissions. It is predicted that Pay As You Drive Car Insurance can contribute towards a significant reduction of unnecessary travel – and a reduction in CO2 emissions.
Through the design and marketing of Pay As You Drive Car Insurance products car insurance companies are rewarding vehicle owners who are travelling less and in the process are taking a big step towards environmental protection!!